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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Hawk who wrote (5803)	2/5/1998 12:32:00 PM
From: Chris	Read Replies (2) \| Respond to of 42787

bay -- i have 200 ma at 29.xxx. entry point there? highly possible. my 30.5 level was given out w/o much thought, so disregard.. you think we can get 29.xxx?

To: Hawk who wrote (5803)	2/8/1998 12:41:00 PM
From: Chris	Respond to of 42787

bay analysis continued: ok.. now, let's start with the indicators themselves.. im gearing towards using this chart and using "popular" indicators so we can follow along.. cbs.marketwatch.com ok.. change of plans... read carefully.. go to the above link and select 1 yr weekly as your time duration.. punch in the chart let's do some TA: 1) the macd on the WEEKLY scale is my favorite. it's really smoooothh.. as we see here, macd weekly was buy from march 1997 to late october 1997.. as you can see, it gave up a tons of points at the end, but hopefully, you would have gotten out sooner. also do note that we are looking at one indicator only. which should never be done. always have confirmation with other indicators... 2) well,, let's look at right now.. ahhhh almost a buy macd crossover.. buy signal generated when green above red line. we are almost there.. 3) now, let's look at the WEEKLY RSI indicator: this is an overbought/oversold indicator. when it reaches above 80, and curving down, it means it's overbought for that time frame (which is weekly in our case). it's oversold, when it reaches below 20 and moves up. now, don't take those levels literally. it's all eyeball sometimes.. let's chk how well it did: late april, we see RSI dip down and reverse sharply from the 20's. bam, it took off from there. rallying all the way until 2nd week of october when the RSI crossed below 60. notice, it was also kinda late in getting you out from the peak if you're not comfortable with losing that much from the peak, then change your parameters and such.. and also know ,that you arelooking at weekly chart, not the daily.. using the daily would get you out much sooner. please note i said 60 and not 80, b/c rsi never got up that high.. i know it's confusing, but rules sometimes have to be broken. as in this case.. let's look at where we are right now. we see rsi not dipping to 20 and giving us the "proper" buy signal, but we do see it bottoming out and moving up again. another level to be used with RSI is the 50 level. so far, we know 20/80 trigger levels eh? well, 50 is also important. 50 can also be used as a buy trigger.. especially, if you dont have deep bottom's to the 20's. no fear.. use the 50 level.. let's see: we noticed that from from nov 1997 to early feb 1998, rsi failed to cross above 50.. (eye ball it). not until right now, did BAY managed to go above 50.. that's a good sign. . it means "the trend is changing" ======== Let's move on to MONEY FLOW.. money flow is used exactly the same as RSI... use the 20/50/80 trigger levels. for the money flow, we see it using the proper trigger levels of 80 as sell and 20'ish for the buy... =========================================